Trump to slash USAID's foreign assistance budget by 92%

The Trump administration has announced that it will slash USAID’s foreign assistance budget by 92 per cent, thus significantly reducing the agency’s ability to support development efforts in countries like Nigeria.

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The US State Department announced on Wednesday that it will reduce the budgetary allocation of USAID’s (United States Agency for International Development) foreign development programmes and multi-year contracts by 92 per cent.

The agency said on Wednesday that the contract and foreign assistance programmes to be eliminated total $54 billion.

The agency said the slash in the USAID programme is part of a review to significantly reduce US foreign assistance to countries.

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“At the conclusion of a process led by USAID leadership, including tranches personally reviewed by Secretary Marco Rubio, nearly 5,800 awards with $54 billion in value remaining were identified for elimination as part of the America First agenda – a 92 per cent reduction,” the agency declared in a statement according to Al Jazeera.

The US State Department also stated that another 9,100 grants involving foreign assistance, estimated to cost more than $15.9 billion, will also be reviewed.

After the review, another 4,100 grants worth almost $4.4 billion may be eliminated.

Since returning to the White House, President Donald Trump’s “America First” agenda has led to the suspension of US foreign humanitarian assistance from multiple countries, causing confusion and tension worldwide.

Shortly after his inauguration in January, Mr Trump signed an executive order to stop the disbursement of all US foreign aid for 90 days, a move which disrupted crucial activities in Nigeria and other developing countries.

Two weeks later, the administration targeted USAID, proposing to dissolve it as an independent agency and merge it with the US Department of State.

The agency is currently facing allegations of financing terror groups like Islamic State, al-Qaeda, and Boko Haram in Nigeria, allegations that are yet to be proven.

The US State Department has, however, stated that the review will not affect programmes focused on providing food assistance, life-saving medical treatments for diseases like HIV and malaria, and support for countries such as Haiti, Cuba, Venezuela and Lebanon.

Nigeria’s efforts

In Nigeria, the federal government says it is committed to bridging the funding gap created by the new US government.

On 3 February, the Federal Executive Council (FEC) approved $1.07 billion to finance the healthcare sector reforms under the Human Capital Opportunities for Prosperity and Equity (HOPE) programme.

One of the areas most impacted in Nigeria by the US cut in development funding is HIV treatment and prevention.

PREMIUM TIMES reported that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed that FEC also approved N4.8 billion for HIV treatment.

The National Agency for the Control of AIDS (NACA) also announced that it plans to strengthen its domestic HIV response and also produce HIV-related medical tools, including test kits and antiretroviral drugs.

Also as part of the government’s efforts to address the funding gap, the Nigerian Senate recently allocated an additional N300 billion to the health sector in the 2025 budget.

The additional allocation, equivalent to $200 million, will target health programmes such as Tuberculosis, HIV, Malaria and Polio.

Already, 28,000 Nigerian health workers formerly paid by the USAID have been absorbed by the health ministry.